Governor Jerry Brown has signed California's new budget into law.

The $96 billion budget is expected to put an end to years of deficits. This is the first budget since voters approved $6 billion dollars in new taxes. The governor is responding by requiring lawmakers to keep a $1 billion dollar reserve in the state's coffers.

Gov. Brown says that this is a budget about investing in significant programs, education and health care. He also says that the nation is looking to California to lead the way in implenting Obamacare as well as how the state is strengthening local control.

Using the Affordable Care Act, Medicade will be expanded to 1.4 million low-income state residents. The budget also changes the way K-12 schools receive funding -- making sure more money goes to schools with low-income students and limited English skills.

Gov. Brown says that this is the first time in a decade or more that the state's finances are in very solid shape. However, he did say that this doesn't mean that the financial problems for the state are not over or that there are long term liabilities.

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